Cairn Oil and Gas, a subsidiary of Anil Agarwal-led Vedanta Ltd, on Wednesday announced an oil discovery in its Krishna Godavari basin block in the Bay of Bengal.
Cairn India had won the KG-OSN-2009/3 block in June 2010 during the edition of the New Exploration Licensing Policy (NELP).
In a press statement, Vedanta said: "it has notified the Directorate General of Hydrocarbons and Ministry of Petroleum and Natural Gas of an oil discovery in the second exploratory well H2, located in the block KG-OSN-2009/3, Krishna-Godavari Basin, East Coast of India."
Vedanta holds 100% participating interest in the block.
"Multiple reservoir zones were encountered in the well H2 within the Mesozoic sequence...during drilling and down hole logging," it said.
The company also added that further appraisal will be required to establish the size and commerciality of the oil discovery.
The first exploration well A3-2 drilled in the block was a gas discovery.
“Evaluations are ongoing based on the results of the first well A3-2 and the second well H2 to finalise the forward programme," it said.